Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
U.S. energy firms this week added oil and natural gas rigs for a second week in a row, but only incrementally as softening crude prices deter some drillers from returning to the wellpad.
The oil and gas rig count, an early indicator of future output, rose four to 756 in the week to July 15, its highest since March 2020, energy services firm Baker Hughes Co. said in its closely followed report.
Baker Hughes said that puts the total rig count up 272, or 56%, over this time last year.
U.S. oil rigs rose two to 599 this week, their highest since March 2020, while gas rigs were unchanged for a second week in a row at 153.
Oil prices are up about 31% so far this year, soaring during the first half of 2022 after Russia’s invasion of Ukraine in February added to supply concerns.
However, at about $98/bbl on July 15, prices were set to fall for a second straight week, after falling in June, the first monthly decline since November, due to recession concerns that would lead to demand destruction.
Even though the total rig count was up for a record 23 months through June, weekly increases have mostly been in the single digits and oil production is still below pre-pandemic record levels as many companies focus more on returning money to investors and paying down debt rather than boosting output.
U.S. crude production was on track to rise from 11.2 million bbl/d in 2021 to 11.9 million bbl/d in 2022 and 12.8 million bbl/d in 2023, according to federal energy data. That compares with a record 12.3 million bbl/d in 2019.
Recommended Reading
Tech Trends: Safety, Speed, Savings: Automation is Transforming Drilling
2024-03-26 - Drilling is getting smarter through automation, delivering efficiency, consistency and reliability.
AI Advancing Underwater, Reducing Human Risk
2024-03-25 - Experts at CERAWeek by S&P Global detail the changes AI has made in the subsea robotics space while reducing the amount of human effort and safety hazards offshore.
CERAWeek: Large Language Models Fuel Industry-wide Productivity
2024-03-21 - AI experts promote the generative advantage of using AI to handle busywork while people focus on innovations.
Geothermal ‘Could Save the World,’ but Faces Familiar Subsurface Risks
2024-03-20 - CERAWeek panelists discussed hurdles to widespread use of Earth’s heat to generate power — problems familiar to oil and gas operators.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.